17 October 2012
Nature of Service - Hiring of motor vehicle
Service Provider - Individual(Proprietor) Service Receiver - Cooperative Society
Whether the service receiver who is a cooperative society is liable to pay service tax under reverse charge mechanism as per Notification No. 30/2012-Service Tax???
18 October 2012
Reverse Charge is applicable if the Receiver is any co registered under Companies Act or any business entity registered as body coporate.
Therefore in your case reverse charge is not applicable.
26 October 2012
But as per section 2(7) of company act, the definition of body corporate specifically excludes cooperative society. Therefore, I think reverse charge is not applicable.
27 October 2012
the term bodycorporate has not been defined in Finance Act. The definition under Companies Act is for the purpose of that Act. Cooperative Society is Body Corporate . It is not clear why it has been specifically excluded from definition under Companies Act
27 October 2012
The text of sec 2 (7) of the Companies Act 1956:-
sec 2(7) " body corporate " or " corporation " includes a company incorporated outside India but does not include
(a) a corporation sole ;
(b) a co-operative society registered under any law relating to co-operative societies ; and
(c) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification in the Official Gazette, specify in this behalf ;
27 October 2012
Yes the word body corporate is not defined under finance act but the word is used in the act therefore meaning has to be taken from the companies act where the word is defined.
CAclubindia
